Direct, indirect and mediation effects of consumer ethnocentrism on the willingness to pay premium price for locally produced honey

Abstract

The study investigated the factors influencing the preference for locally produced honey in Ghana and the direct and indirect effects of consumer ethnocentrism on the willingness to pay premium price. The study results indicated that consumer ethnocentrism, trust, and purchase from the local or farmers’ market positively influenced the preference for locally produced honey; meanwhile, monthly consumption and packaging negatively influenced the preference for locally produced honey. Evidence from the structural equation model suggested that consumer ethnocentrism had a direct and positive effect on consumers’ willingness to pay for locally produced honey at premium price. Also, monthly consumption negatively mediates the consumer ethnocentrism and readiness to pay for locally produced honey at premium price. Further, education had a direct and negative effect on consumers’ willingness to pay for locally produced honey at premium price, but education through consumer ethnocentrism had no significant effect.